In a stunning turn of events for Bernard Arnault, the owner of luxury conglomerate LVMH, his fortune has taken a significant hit, leading to his demotion to the seventh richest person in the world. On Tuesday, April 15, 2025, Arnault lost an astonishing $12.3 billion in just one day, according to reports from BFMTV and the Bloomberg index. His personal wealth has now plummeted to $151 billion, a stark contrast to over $230 billion just a year ago.
The downfall comes on the heels of disappointing quarterly results from LVMH, which were released on April 14. The luxury group, which boasts iconic brands such as Louis Vuitton, Moët Hennessy, Dior, Givenchy, and Fendi, reported a 5% decline in revenues from its fashion and leather goods division during the first three months of 2025. This sector is crucial for LVMH, and the drop in earnings has raised alarms among investors.
Arnault's recent losses have pushed him down the list of the world’s wealthiest individuals, leaving him behind prominent figures like Elon Musk, who leads with a staggering $313 billion, followed by Jeff Bezos at $201 billion, and Mark Zuckerberg at $185 billion. Warren Buffett, Bill Gates, and Larry Ellison also now surpass Arnault, who was ranked fifth just weeks ago.
The decline in LVMH's stock price, which fell by 7.82% on the same day as the announcement of its quarterly results, has directly impacted Arnault's wealth. This marks a significant downturn for LVMH, which has seen its stock value drop by more than 23% since the beginning of 2025. Analysts attribute the poor performance to a combination of factors, including a downturn in demand from Chinese consumers, a key market for luxury goods.
According to Jie Zhang from AlphaValue, "LVMH has experienced a tough start to the year, with all divisions reporting sales below expectations." This is particularly concerning given that LVMH had recently returned to growth in the last quarter of 2024, raising hopes for a more prosperous 2025.
Furthermore, the luxury market is facing broader challenges, including geopolitical uncertainties in the United States and changing consumer spending patterns. The decrease in Chinese consumer spending, attributed to growing macroeconomic uncertainties, has been particularly detrimental to LVMH's performance.
In a surprising twist, the luxury brand Hermès has now overtaken LVMH in market valuation, becoming the most valued company in the CAC 40 index, which tracks the largest companies on the Paris stock exchange. Hermès' market capitalization rose to 248.60 billion euros, compared to LVMH's 244.39 billion euros. This shift illustrates the competitive landscape within the luxury sector, where brands are vying for consumer attention and investor confidence.
Despite the challenges faced by LVMH, Hermès has managed to thrive, gaining nearly 1.5% in the CAC 40 since January. Analysts suggest that the continued allure of Hermès, known for its iconic Kelly and Birkin bags, reflects a strong market confidence in the brand.
As Bernard Arnault navigates this turbulent period, the luxury industry watches closely. His ability to rebound from this setback will be critical not only for his personal fortune but also for the future of LVMH and its prestigious brands. The coming months will reveal whether Arnault can steer his company back toward growth and regain his position among the world’s wealthiest.
For now, the luxury sector is at a crossroads, with shifting consumer behaviors and economic pressures shaping the path ahead. Investors and consumers alike will be keenly observing how these dynamics unfold.
